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Walter Industries, Inc. Announces Closure of Jim Walter Homes
- Clears Way for Last Step in Transformation into Pure Play Natural Resources and Energy Company -
TAMPA, Fla., Jan. 6 /PRNewswire-FirstCall/ -- Walter Industries, Inc. (NYSE: WLT) announced today the closure of its Jim Walter Homes subsidiary. Jim Walter Homes built more than 350,000 homes during its history, but has not been profitable in several years. The Company said it expects to record a pre-tax charge of approximately $8 - $10 million in the fourth quarter 2008 related to the closure of the business.
"The story of Jim Walter Homes began as World War II ended and soldiers came home to pursue the American Dream. Regrettably, it ends at a time when the fundamentals of the homebuilding industry have deteriorated in ways never seen before," said Walter Industries Chairman Michael T. Tokarz.
Tampa entrepreneur Jim Walter founded Jim Walter Homes in November 1946, when he used $395 in savings to buy and sell his first "shell" home, for a profit of $300. As a result of the success of Jim Walter Homes, Jim Walter was able to build a Fortune 500 conglomerate with businesses as diverse as mortgage financing, coal mining and ductile iron pipe manufacturing. The Company completed its spin off of Mueller Water Products, which encompassed its interest in the ductile iron pipe and water products businesses, in December 2006. Mueller Water Products continues to be listed on the New York Stock Exchange today.
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